Coinbase announced that not only are investors using Coinbase Custody, but they have secured at least one very large one.
Coinbase announced that they have already partnered with a $20 Billion dollar hedge fund through their Coinbase Prime services.
They wouldn't name publicly which fund this was, but said that it had roughly $20 billion under management.
(Source: https://www.ccn.com/coinbase-scores-major-whale-for-institutional-brokerage-service-report/)
Coinbase also said they have been talking with other large hedge funds that are interested in their custody solution for investing in cryptocurrency.
What is Coinbase Custody?
Coinbase Custody was launched on July 2nd in order to offer better solutions for institutional investors to enter the markets.
The service offers much better security than traditional exchanges.
It also offers insurance on the holdings.
On top of that, the service is said to be secured by Electronic Transaction Clearing (ETC) which operates in compliance with the SEC.
(Source: https://coindoo.com/the-coinbase-custody-for-financial-institutions-was-released/)
But wait, there's more...
Coinbase also revealed that they are seeking partnerships with other large hedge funds.
They are also planning on launching margin services for their clients by the end of 2018.
Which would likely really open the door for hedge funds to start using their products.
Hedge Funds will be first, but then other types of funds will follow suit.
The stampede is starting, do you hear the rumble in the distance?
Stay informed my friends.
Image Source:
https://blog.coinbase.com/coinbase-custody-is-officially-open-for-business-182c297d65d9
